Household debt rises to 8-year high

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BANGKOK – The Center for Economic and Business Forecasting (CEBF) of the University of the Thai Chamber of Commerce has conducted a poll of Thai laborers, revealing that household debt has risen to an eight-year high.

Thailand News - 29-04-17 3 NNT Household debt rises to 8-year high 1

The CEBF surveyed 15,000 Thai employees, of whom 97% reported an average of 131,000 baht in debt per household. The figure marks an increase of 10.4% from the previous year and the most in eight years.

However, the poll also revealed that more household debt was owed to financial institutions, as opposed to informal lenders. The proportion of formal debt reached a four-year high of 46.4%, a reflection of government efforts to crackdown on loan sharks.

CEBF Director Dr. Thanawat Polvichai said that despite the increase in household debt on the part of Thai workers, more expenditures went towards durable goods, such as cars, motorcycles, and homes. Respondents also reported higher savings at a rate of 62.6% from 39.4% last year.
According to Dr. Thanawat, these figures indicate more consumer confidence in Thailand.